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The CS351N is a noise canceling headset, one of the better ones at doing
that and there is no special button to change that feature. You can try
bringing the microphone closer to your mouth and bringing the volume
down so the microphone is not as sensitive. You can try moving away from
the other user (probably impractical) or ask them to tone down the
volume.

If you unplug the chat-controller cable from your headset and controller, does the click/static noise go away? If yes, then you need a new chat-controller cable. Email support@turtlebeach.com for that.
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If the noise remains even after you've disconnected the chat cable, then the problem is likely due to the presence of too many other Radio Frequency wireless devices competing with the X31 transmit/receive, especially if you have an 802.11n ("N") router made before Oct 2009. If that's the case, you should definitely contact Turtle Beach at support@turtlebeach.com and ask them for help with this.

thank you for your e-mail. however, i decided not to use the headset anymore since my webcam has already built-in microphone. i think eventhough i will use the headset, the problem regarding the noise during conversation will not go away. i think think is really the part of on-line chatting.